This Question: 4 pts The Sgure to the right lustrates the market for apples in w

Question

This Question: 4 pts The Sgure to the right lustrates the market for apples in which the government has imposed a price floor of $12 per carate How many crates of apples wil be sold aner the price for has been imposed?nion crates or apples per year Eter your respoanse as an indeger) Will there be a shortage or surplus? If there is a shortage or surplus, how large will t be? There wil be a Supply ofmion crates of apples per year(Ender your response as an nger, OA, Apple producers who are able to sell ther apples at the S12 pnce per crate wa beneft O B. Apple prodacers who are not able to sell their apples will not benetit O C. Total revenue for apple producers as a group will decrease from $242 million to $240 miálion OD. B th a and b Denand E. Aa of the above Click to select your answer(s)

Explanation / Answer

Answer
20 million
surplus, 6 million
Option E
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the price floor is effective when it is above equilibrium price and it is effective but the effective price floor creates the surplus in the market
surplus=Qs-Qd=26-20=6 million
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the apple producers benefit if they can sell otherwise they worse off and the TR decreases from 242 to 240
as we see
before price floor it was=22*11=242
and after
=20*12=240

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